Elon Musk Is Dead Wrong About The Cost Of The Hyperloop: In Reality It Would Be $US100 Billion

Hyperloop passenger transport capsule conceptual design renderingTesla Motors/ScreenshotElon Musk’s prototype drawing for the Hyperloop.

Tesla CEO Elon Musk’s plan for a space-age
Hyperloop transport system between Los Angeles and San Francisco would cost only $US7.5 billion, he said in the plans he published recently.

That seems absurdly cheap for the most ambitious public transport infrastructure investment since the national highway system.

But the New York Times did us all a favour by calculating the true cost of the Hyperloop: It’s going to be ~$US100 billion.

The Hyperloop is a pressurised tube system in which passenger cars zoom around at 800 miles an hour, pushed by a column of air behind them.

Musk envisions the tubes sitting on pylons, some of them raised over existing highways between the two cities, presumably so that the Luddites who still want to drive can see what they’re missing as Musk’s Hyperloop pods whoosh past.

That doesn’t factor in the cost of buying the land needed to build the Hyperloop track, the Times notes:

Michael L. Anderson, an associate professor of agricultural and resource economics at the University of California, Berkeley, predicted that the cost of the entire project would be closer to $US100 billion.

That’s because the government would need to buy up to 1,100 different parcels of land just to get the space to build the thing, the LA Times noticed in an article about high-speed rail between the two cities.

NOW WATCH: Tech Insider videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.